Interest rate cuts are 'acting like a tax increase' by reducing savers' spending power - and their anger might have contributed to the Brexit result, according to former pensions minister Ros Altmann.

She called for a national inquiry into the impact of ultra-low interest rates, which were eroded further by the recent cut in the Bank of England base rate to 0.25 per cent.

Some home owners have seen the benefits of low borrowing rates offset by surging house prices, however, those hoping to get onto the housing ladder or move further up it have seen property inflation that is much higher than wage growth push homes further away

Baroness Altmann suggested that monetary policy could have contributed to dissatisfaction among voters who have felt 'left behind' in recent years.

She said: 'The rise of anti-establishment nationalist movements, epitomised by the Brexit result, may reflect anger at the financial difficulties facing some parts of the population, which policymakers have failed to recognise.

'Politicians might like to consider how this balance of winners and losers fits with a desire to help the many, rather than the privileged few.'

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Baroness Altmann stepped down as Pensions Minister following the Brexit vote, and has since launched a series of broadsides against her former political bosses and decried the Bank's move to further slash interest rates.

She has called for an end to the 'triple lock' which sees the state pension increased by whatever is the highest of inflation, average earnings or 2.5 per cent. And she appealed for more help for women hit by quicker than expected increases in the state pension age.

In her latest intervention, she said the groups that have been damaged by monetary policy include people trying to get on the property ladder and savers relying on interest on their cash pots for an income.

But she believes the full impact of the Bank of England's quantitative easing 'experiment' will not be known or understood for many years, while its negative side-effects may have been underestimated.

Baroness Altmann said: 'It is worrying that this massive monetary experiment of printing money to artificially distort long-term interest rates may now be considered "normal" - it is certainly not normal at all. Indeed its effectiveness is unclear. It may do more harm than good.'

She continued: 'The combined impact of low interest rates and more QE reduces the disposable incomes of savers and pensioners.

'In some respects, monetary policy is acting like a tax increase... soaring house prices and rising rents have reduced younger people's spending power, while savings and pension income for older groups have been cut.'

Baroness Altmann said rather than low rewards on cash savings pushing people towards spending, lower savings incomes may drag on the economy by making savers to spend less.

She continued: 'Ordinary households have not really felt as much benefit from the ultra-low interest rate environment as might be expected.

'And even though fixed-rate mortgage costs have fallen, the rise in house prices means the size of a mortgage required for house purchase has increased. For many people the costs are so high relative to their income that they cannot get a mortgage at all.'

Baroness Altmann said the high cost of housing relative to salaries prevents younger generations getting on the housing ladder and forces up rental costs.

She said: 'Rather than supporting house prices, policy needs to address the shortage of housing by building more homes.'

Figures released by the ONS today showed house prices up 8.3 per cent across the UK on average over the past year, whereas its average weekly earns data shows wages have risen by just 2.4 per cent over the same period.

The average home was £17,000 more expensive in July than a year earlier.